Source A : Excerpted from Chairman’s Foreword, 2012 Report of the Minimum comprehensive platform of job search with one-stop
with one-stop and diversified pre-
Wage Commission
“…the statutory minimum wage (SMW) came into effect on 1 May 2011 in Hong
Kong… The initial SMW rate set at $28.0 per hour has improved noticeably the
income of lowpaid employees in real terms…”
Source B : Report consolidated from a newspaper in 2010 and 2012
According to the statistics of 2010, the average hourly wage for the catering
industry in Hong Kong was $22.6. The implementation of the Statutory Minimum
Wage (SMW) ($28) on 1 May 2011 provides a secure income for low-paid
employees, yet employers in catering industries are facing difficulties as a result.
After the implementation of SMW, the difference in wage is narrowed between
catering industry and other industries, more existing employees and potential
employees prefer to work for the jobs with less hardship but with similar pay. This
leads to a serious loss of employees in the catering industry. There is a relatively
small number of entrants in this industry. It is expected that the SMW will
continue to make hiring in the catering industry difficult.
Source C : Unemployment rate by age and sex and overall unemployment in the
2nd Quarter, 2015 (April to June)
Source D : Excerpted from Youth Employment and Training Programme (YETP)
website
With the concerted efforts of the Labour Department, employers and service
providers, the Youth Employment and Training Programme (YETP) provides a
employment and on-the-job training for young school leavers aged 15 to 24 with
educational attainment at subdegree or below level. This programme enables
young people to better understand themselves and their work aptitudes while
enriching their job skills and experience so as to enhance employability.
Source E : Excerpted from Legislative Council Press Release, 30 January 2013 4
It has been reported that while the present number of unemployed young people
aged 15 to 34 approaches 60 000, there are over 20 000 job vacancies in the retail,
hotel and catering industries, and more than 3 000 vacancies in the construction
industry. There is a view that should this group of young people fill the vacancies
in these four industries, the problem of unemployment among young people will
be ameliorated, and the problem of manpower shortage in these industries will also
be alleviated.
1. What impact does the implementation of Statutory Minimum Wage (SMW)
have on the employment opportunities of the following persons?
(i) Professionals (2 marks) (ii) Low-skill workers (2 marks)
2. With reference to Source B and your knowledge of supply and demand, explain
why some industries (e.g. catering) have difficulty in hiring labour after the
implementation of SMW. Using a diagram to illustrate your answers. (6 marks)
3. Referring to Source C, compare the unemployment situation among youths
between 15 and 24 and those above 15 (combined). Some people believe that this
situation is caused by job mismatch in the labour market. Do you agree? Explain
your reasons. (4 marks)
4. Referring to Source D, do you think Youth Employment and Training
Programme (YETP) can achieve the following two goals:
(i) Alleviate youth unemployment (2 marks)
(ii) Promote youth labour productivity (2 marks)
5. Some youth groups suggest that the government can address youth
unemployment through encouraging youth entrepreneurship. Refer to Source E and
your personal understanding for economics, evaluate the above and suggest ways
the Government can alleviate youth unemployment (8 marks)